2012 Mint Museum
Budget Ordinance Financial Management Policies Basis of Budgeting and Accounting County Debt Policy Mecklenburg County At A Glance FY2012 Mecklenburg County Jurisdiction Tax Rates Five Year Historical Comparison of Tax Rate 20 Year Property Tax Rate Summary Property Tax Rate Per Capita: Ten Year Comparison FY 2012 Adopted Fees Glossary of Terms
Appendices
Appendices
MECKLENBURG COUNTY, NORTH CAROLINA BUDGET ORDINANCE FISCAL YEAR 2011-2012 The following ordinance was offered by Commissioner Vilma Leake
who moved its adoption:
BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF MECKLENBURG COUNTY, NORTH CAROLINA, THIS 7TH DAY OF JUNE 2011:
Section I. That for the operation of Mecklenburg County's government and its subdivisions for the fiscal year beginning July 1, 2011 and ending June 30, 2012, the amounts in the following schedules are hereby appropriated: $1,041,290,167
General Fund including appropriation for: Capital Reserve Fund Capital Project Pay Go Fund
8,750,000 32,343,773
Technology Reserve Fund
4,100,000
Vehicle Reserve Fund
1,100,000
Debt Service Fund
268,971,000
Law Enforcement Service District Fund
11,467,170
Solid Waste Enterprise Fund
16,420,008
Storm Water Special Revenue Fund
14,657,537
Transit Sales Tax Special Revenue Fund
32,200,000
TOTAL APPROPRIATIONS
$1,385,005,882
Section II. That it is estimated that the following revenues will be available during the fiscal year beginning July 1, 2011, and ending June 30, 2012, to meet the appropriations in Section I, as set forth in the following schedules: General Fund Current Tax Levy Revenues – Other Sources
$656,202,487 385,087,680
Subtotal – General Fund
$1,041,290,167
Debt Service Fund Current Tax Levy Revenues – Other Sources
$224,195,000 44,776,000
Subtotal – General Fund
268,971,000
Law Enforcement Service District Fund Current Tax Levy
11,467,170
Solid Waste Enterprise Fund Revenues – Other Sources Revenues – Fund Balance Subtotal – Solid Waste Enterprise Fund
$14,967,576 1,452,432 16,420,008
Storm Water Special Revenue Fund Revenues – Other Sources
14,657,537
Transit Sales Tax Special Revenue Fund Non-Property Tax ESTIMATED REVENUES
32,200,000 $1,385,005,882
Section III. That there is hereby levied for the fiscal year beginning July 1, 2011 and ending June 30, 2012, the following rate of property tax on each one hundred dollars ($100) of assessed valuation of taxable property, as listed for taxes as of January 1, 2011, for the purpose of raising the revenue for current year's taxes as set forth in the foregoing estimates of revenues, and in order to finance the foregoing appropriations:
523
Tax Rate 81.66¢ Based on Estimated Assessed Valuation of $110,577,000,000
Section IV. There is also hereby levied for the fiscal year beginning July 1, 2011 and ending June 30, 2012, the following rate of property tax on each one hundred dollars ($100) of assessed valuation of taxable property subject to taxation in the Law Enforcement Service District (the entire unincorporated area) as listed for taxes as of January 1, 2011, in addition to that levied throughout the County, for the purpose of raising the revenue for the Law Enforcement Service District as set forth in the foregoing estimates of revenues, and in order to finance the foregoing appropriations: Law Enforcement Service District Tax Rate 18.66¢ Based on Estimated Assessed Valuation in the Law Enforcement Service District of $6,396,162,008
Section V. The foregoing appropriations, schedules of expected revenues, and taxes levied, are based on the annual budget as hereby approved, a summary of which budget is attached as Schedule No. 1, and the terms of which budget are hereby specifically incorporated by reference. Section VI. The total of all amounts encumbered for outstanding purchase orders and contracts at June 30, 2011 shall be carried forward in fund balance as the amount Reserved for Encumbrances and the corresponding appropriations for these encumbrances shall not lapse in order to properly account for the payment in the fiscal year paid.
Section VII. The Management and Budget Director, as approved by the County Manager, is hereby authorized to transfer the unencumbered balance, or any portion thereof, from one appropriation to another appropriation within the same fund. Expenditures will be controlled for financial reporting purposes at the agency level and for operational purposes within organization units at the appropriation unit for all category levels (4000, 5000, 6000, 7000, 8000 and 9000 series of accounts). The original capital outlay appropriation by organization unit may not be increased by transfer by more than $50,000 of local funds without specific Board action. The Management and Budget Director may authorize, at the request of the affected department head or his\her designee, the substitution of one capital outlay item for another within the appropriation limits set forth above. The Management and Budget Director may authorize non-locally funded changes in capital outlay resulting from Federal, State or other grant funding as requested by the affected department. The County Manager may delete positions as part of reorganization but the Board must approve all new permanent positions.
Section VIII. The County Manager or his designee may award and execute contracts that are not required to be bid or which G.S. 143-131 allows to be let on informal bids so long as the budget or appropriate capital project ordinance or capital reserve fund contains sufficient appropriated but unencumbered funds for such purposes. On behalf of Mecklenburg County, the County Manager or his designee, may enter into and execute change orders or amendments to construction contracts when the appropriate capital project or capital reserve fund contains sufficient appropriated but unencumbered funds allocated for such construction projects. On behalf of Mecklenburg County, the County Manager or his designee, may execute contracts with outside agencies to properly document budgeted appropriations to such agencies where G.S. 153A-248(b), 259, 449 or any similar statutes require such contracts. On behalf of the Mecklenburg County Consolidated Human Services Agency (“ Human Services Agency”), the County Manager or his designee, may award and execute contracts which are not required to be bid or which G.S. 143-131 allows to be let on informal bids so long as the budget contains sufficient appropriated but unencumbered funds for such purposes, and may execute contracts with outside agencies to properly document budgeted appropriations to such agencies where G.S. 122C-141, 142 or any similar statutes require such contracts. The County Manager or his designee may execute contracts on behalf of the Human Services Agency or the County, to render services, at not less than full cost, with the State, other political subdivisions of the State and outside agencies. The County Manager or his designee may execute contracts or other agreements with the State of North Carolina required by the State in connection with the receipt of revenues that are included in the estimate of revenues. The County Manager shall exercise his authority to designate individuals who are authorized to award and execute contracts only by a written memorandum of delegation filed with the Clerk to the Board, the County Attorney, and the Director of Finance, except that the County Manager may designate the General Managers, and with respect to the mental health, developmental disabilities and substance abuse division of the Human Services Agency, the director of said division, without filing a written memorandum of delegation. Provided, however, annual hardware and software maintenance agreements, equipment leases for fewer than 30 days, and purchase orders may be processed without the signature of the County Manager or his designee if processed in accordance with policies of the Finance Department.
Section IX. That there is hereby appropriated to the Solid Waste Enterprise Fund all Residential Solid Waste Fees, user fees, tipping fees, revenues from sale of recyclables and other revenues attributable to the program. 524
A Residential Solid Waste Fee of $15.00 per year is imposed under N.C.G.S. 153A-292 for the fiscal year beginning July 1, 2011 and ending June 30, 2012, on all mobile homes, single family and multi-family residences located in Mecklenburg County on January 1, 2011, as provided in the Residential Solid Waste Fee Ordinance. Such fees are to be added to the 2011 property tax bill, are payable in the same manner as property taxes, and, in the case of nonpayment, may be collected in any manner by which delinquent personal or real property taxes can be collected. The Residential Solid Waste Fee Ordinance provides additional details about this fee.
Section X. That there is hereby appropriated to the Storm Water Special Revenue Fund all Storm Water Fees and other revenues attributable to the program.
Section XI. That there is hereby appropriated to the Law Enforcement Service District Fund (a special revenue fund) revenues from the collection of the Law Enforcement Service District Ad Valorem tax at the rate stated in Section IV.
Section XII. The Director of Finance is authorized to transfer as a loan from the General Fund to the Law Enforcement Service District Fund, funds necessary to provide cash for operation until such time as revenues received from all sources are sufficient to provide funding for expenditures. The loan is to be paid back to the General Fund when cash balances allow for repayment. Section XIII.
That there is hereby appropriated to the Technology Reserve Special Revenue Fund as a transfer from the General Fund, $4,100,000. Funds appropriated can only be utilized for technology either in the current or subsequent fiscal years.
Section XIV. That there is hereby appropriated to the Capital Reserve Special Revenue Fund as a transfer from the General Fund, $8,750,000. Funds appropriated can only be utilized for capital expenditures in the current or subsequent fiscal years.
Section XV. That there is hereby appropriated to the Vehicle Reserve Special Revenue Fund as a transfer from the General Fund, $1,100,000. Funds appropriated can only be utilized for vehicle replacement either in the current or subsequent fiscal years. Section XVI. The Capital Project Pay-Go Fund is funded by an appropriation of $32,343,773 as a transfer from the General Fund. Funds appropriated can only be utilized for capital projects either in the current or subsequent fiscal years. Section XVII. In accordance with North Carolina General Statute 115D-58.2, the Director of Finance is directed to provide, based on the appropriations herein, funds to Central Piedmont Community College as needed (with at least one transfer of funds during each month for which funds are requested) to meet the expenditures reflected in the approved budget. All unexpended and unencumbered funds at the end of the fiscal year shall be returned to Mecklenburg County within thirty (30) days after the close of the fiscal year.
Section XVIII. The appropriations to the Charlotte-Mecklenburg Board of Education have been allocated by purpose, function and project as defined in the uniform budget format, as shown on Schedule No 2. The CharlotteMecklenburg Board of Education must obtain the approval of the Board for any amendment to the Board of Education's budget which would (a) increase or decrease appropriation for capital outlay approved by the Board of Commissioners for such projects as listed in G.S. 115C-426(f)(1) or (2), or (b) increase or decrease the amount of other County appropriations allocated to a purpose or function by more than ten (10%) percent.
Section XIX. That there is hereby established the Debt Service Fund to account for payment of the County’s general debt service and the accumulation of resources for the County’s general debt service. The Debt Service Fund is funded by appropriation of actual proceeds of revenues dedicated for debt service, specifically sales tax Articles 40 and 42 received and allocated for schools, and lottery, ABC and investment revenue along with property tax revenue. The total appropriation for this fund is $268,971,000. Funds appropriated can only be utilized for debt service in the current or subsequent fiscal years. The Director of Finance is authorized to transfer as a loan from the General Fund to the Debt Service Fund, funds necessary to provide cash for operation until such time as revenues received from all sources are sufficient to provide funding for expenditures. The loan is to be paid back to the General Fund when cash balances allow for repayment.
Section XX. The excess amount of all building development revenues over related expenditures resulting from such fees collected by Land Use and Environmental Services Agency as of June 30, 2011 are to be retained within fund balance and designated for Land Use and Environmental Services Code Administration operations for use at such time that revenues are not sufficient to provide funding for those expenditures. Revenue resulting from the 5% Technology Surcharge for Code Enforcement shall be transferred to the Technology Reserve Fund and appropriated to provide funding for Commercial Code Enforcement technology enhancements only. 525
Section XXI. That before any portion of the $125,000 unrestricted contingency appropriations (Schedule No.3) can be expended, the Board must authorize such expenditure. Section XXII. That there is hereby appropriated to the Transit Sales Tax Special Revenue Fund to account for the proceeds of the one-half percent local government sales and use tax, such actual proceeds as received to be transferred by the Director of Finance to the City of Charlotte in accordance with the provisions of the Transit Governance Interlocal Agreement.
Section XXIII. That there is hereby appropriated to the General Fund, a transfer from the Historic Preservation Revolving Special Revenue Fund transferable as necessary in combination with available revenues to meet the budgeted expenditures to fund Historic Landmarks Commission operations. Section XXIV. The compensation and allowances for the members of the Board of County Commissioners shall be as provided in the annual budget, the details of which are shown attached in Schedule No. 4, and the terms of which budget are hereby specifically incorporated by reference.
526
527
BUDGET SUMMARY BY FUND
SCHEDULE 1
FY 2011-2012
Fund Appropriation General Fund 1,041,290,167 Solid Waste Disposal Enterprise Fund 16,420,008 Storm Water Special Revenue Fund 14,657,537 Transit Sales Tax 32,200,000 Debt Service Fund 268,971,000 Law Enforcement Service District 11,467,170 TOTALS 1,385,005,882
2011-2012 Tax Rate per $100 of Assessed Value: Law Enforcement Service District: Yield of 1¢ Tax Rate Gross $639,616 Less: 4% Allowance for Uncollectibles -25,585 NET $614,031 2011-2012 Tax Rate
18.66 ¢
2011-2012 Est. Assessed Valuation $6,396,162,008
Fund Balance
Federal Aid 97,290,457
State Aid 67,440,188 1,452,432
Other Revenue 97,532,035 14,967,576 14,657,537
Prior Year's Taxes 14,825,000
Sales Taxes 108,000,000 32,200,000 43,515,000
1,261,000 0
97,290,457
68,892,620
128,418,148
14,825,000
183,715,000
2011-2012 Tax Rate per $100 of Assessed Value: General Fund: Yield of 1¢ Tax Rate Gross Less: 2.5% Allowance for Uncollectibles NET 2011-2012 Tax Rate 2011-2012 Est. Assessed Valuation
Current Year's Taxes 656,202,487
224,195,000 11,467,170 891,864,657
$11,057,700 -276,442 $10,781,258 81.66 ¢
$110,577,000,000
528
Schedule 2
MECKLENBURG COUNTY, NORTH CAROLINA CHARLOTTE-MECKLENBURG BOARD OF EDUCATION ADOPTED BUDGET FISCAL YEAR 2011-2012 6/7/2011 5000
Instructional Services
5100
Regular Instructional
5200
Special Populations
5300
Alternative Programs
5400
School Leadership Services
5500
Co-Curricular
5800
School-Based Support Subtotal Instructional Services
6000
System-Wide Support Services
$
97,869,929 18,282,995 9,722,921 28,416,591 3,914,552 19,933,058
$
178,140,046
$
4,722,741
6100
Support and Development
6200
Special Population Support and Development
6300
Alternative Programs Support and Development
6400
Technology Support
10,318,792
6500
Operational Support
83,983,820
6600
Financial and Human Resource Services
13,766,754
6700
Accountability
4,749,711
6800
System-wide Pupil Support
3,282,636
6900
Policy, Leadership and Public Relations
8,324,269
Subtotal System-Wide Support Services 7000 7100
Community Services Nutrition Services Subtotal Ancillary Services
132,143,107
$
516,854
$
516,854
Non-Programmed Charges
8100
Payments to Charter Schools
8300
Debt Service
9000
$
1,315,966
Ancillary Services
7200
8000
1,678,418
16,956,358 582,736
Subtotal Non-Programmed Charges
$
17,539,094
TOTAL OPERATING EXPENDITURES
$
328,339,101
$
4,209,616
Capital Outlay
9100
Category I Projects
9200
Category II Projects
750,384
9300
Category III Projects
-
TOTAL CAPITAL OUTLAY
4,960,000
529
MECKLENBURG COUNTY, NORTH CAROLINA CONTINGENCY FISCAL YEAR 2011-2012 DATE 6/7/2011 RESTRICTED CONTINGENCY
6/7/2011
Schedule No. 3
DATE ADOPTED BUDGET 6/7/2011 UNRESTRICTED CONTINGENCY Contingency 125,000
125,000
125,000
530
Schedule 4
Mecklenburg County, North Carolina Board of County Commissioners Compensation & Allowances Fiscal Year 2011-2012 Salaries (1) Chairman at $28,801 and (8) Commissioners at $23,041 each
$
213,129.00
Technology Allowance (9) Commissioners at $2,900 each
$
26,100.00
Travel Allowance (9) Commissioners at $3,528
$
31,752.00
Expense Allowance (1) Chairman at $4,680 and (8) Commissioners at $4,320 each
$
39,240.00
Total Compensation and Allowances
$ 310,221.00
531
532
FINANCIAL MANAGEMENT POLICIES The following list sets forth the major fiscal and budgetary policies of Mecklenburg County. These policies are established to ensure that financial resources are available to meet the present and future needs of the citizens of Mecklenburg County. Numerous other fiscal policies that relate to particular programs and issues are not listed here, but are believed to be consistent with the overriding principles expressed below:
FISCAL CONTROL The County's Annual Budget Ordinance will be balanced in accordance with the Local Government Budget and Fiscal Control Act (N.C.G.S.159-8 (a)). The County's Annual Budget Ordinance will be adopted by July 1 (N.C.G.S. 159-13 (a)). An annual audit will be performed by a certified public accounting firm in accordance with Generally Accepted Auditing Standards and their opinion will be included in the Comprehensive Annual Financial Report. The auditors are also required to perform a compliance examination for all Federal and State financial assistance programs in accordance with the Federal and State Single Audit Act and to issue a management letter commenting on internal control procedures (N.C.G.S. 159-34 (a)). A reserve for contingency will not exceed 5 percent of the total of all other appropriations in the same fund, except there is no limit on contingency appropriations for public assistance programs required by N.C. G.S. Chapter 108A (N.C.G.S. 159-13 (b) (3)). The General Fund undesignated fund balance will be maintained at a level sufficient to provide for the required resources to meet operating cost needs, to allow for unforeseen needs of an emergency nature, and to permit orderly adjustment to changes resulting from termination of revenue sources. The County will maintain its accounting records on a modified accrual basis, with revenues recorded when available and measurable, and expenditures recorded when services or goods are received and the liabilities incurred (N.C.G.S. 159-26 (c)). The County will produce annual financial reports in accordance with Generally Accepted Accounting Principles (GAAP) as outlined by the Governmental Accounting Standards Board.
533
CAPITAL IMPROVEMENT PROGRAM The County will budget capital projects by capital project ordinances in accordance with the Local Government Budget and Fiscal Control Act (N.C.G.S. 159-13.2). The County’s Capital Improvement Budget will be adopted simultaneously with the Operating Budget. The County will participate in a joint capital planning process to ensure that coordinated planning and exploration of joint use of sites and facilities will occur. Any capital project financed through the issuance of bonds will be financed for a period not to exceed the expected life of the project. The County will pursue a process for building linkages between the City and County capital programs to ensure that both governing boards have a perspective on community-wide needs and priorities and the community’s overall financial capacity. All capital projects will be reviewed by the Citizen’s Capital Budget Advisory Committee for capital project standards for each project category. The County's Capital Improvements Program is composed of a one year budget of a five year comprehensive plan that will be reviewed on a yearly basis. Projects mandated consideration.
by
state
and
federal
government
will
receive
priority
Projects which provide for the renovation of existing facilities, resulting in preservation of the community’s prior investment or which reduce maintenance and operating costs, will receive priority consideration. Projects which preserve and protect the health and safety of the community will receive priority consideration. Land banking for future capital needs will be a priority. The County will seek out partnerships for constructing capital projects.
DEBT MANAGEMENT The County will minimize debt service costs through the judicious use of available debt instruments. The County will strive to maintain its “Triple A” bond rating. The County's ability to borrow at the lowest rate possible and incur the least cost depends to a large extent upon its credit standing as assessed by major credit rating agencies such as Fitch IBCA, Moody's Investor Services and Standard and Poor's Corporation. Bond sales will be scheduled every other fiscal year (at approximately eighteen (18) month intervals) in order to preserve the opportunity for issuance of non-voted debt.
534
The County will provide adequate funds to meet debt service requirements in the subsequent year. The County will not issue notes to finance operating deficits. The term of any bond issue will not exceed the useful life of the capital project/facility or equipment for which the borrowing is intended. The County’s financial management policies will seek to minimize debt interest costs. When planning for issuance of new debt, the County will consider the impact of such new debt on overlapping debt. Bond financing will be confined to capital improvement projects, which could not feasibly be financed from current revenues. The County devotes significant sums of money in the operating budget yearly in order to "pay as you go" for most large dollar capital equipment replacement needs. This policy reduces debt service cost and provides for the orderly replacement of vehicle fleets, heavy equipment, renovation and roof replacements out of the operating budget with no need for use of bonded debt to service these needs. The County will aggressively seek and use donations of property, funds, materials or services to supplement funds provided by the public through the issuance of bonds.
FUND BALANCE The General Fund undesignated fund balance will be maintained at a level sufficient to provide for the required resources to meet operating cost needs, to allow for unforeseen needs of an emergency nature, and to permit orderly adjustment to changes resulting from fluctuations of revenue sources. Based on the recommendation of the State Treasurer’s Office, Mecklenburg County will maintain at least 8 percent of the next year’s budget, net of Federal and State pass-through revenues, in the undesignated fund balance. Any amounts remaining in the fiscal year-end undesignated Fund Balance in excess of 8 percent of the approved subsequent year’s budget, excluding Federal and State pass-through revenue, shall be designated for subsequent year’s expenditures and shall be maintained by the Director of Finance in a separate interest bearing account. This excess amount, along with the interest earned thereon, will be available for appropriation by the Board of County Commissioners in a subsequent fiscal year to fund capital, operating or debt service expenditures as determined by the Board during the budget for that subsequent fiscal year. Primary emphasis will be placed upon “evening out” peaks and valleys for debt service requirements.
535
AMENDING THE OPERATING BUDGET The method of amending the budget is by governing board action only. The Board of County Commissioners may amend the budget at a regular or special meeting on the day the amendment is introduced by a simple majority of those voting. A quorum must be present.
GOVERNMENTAL FUNDS General Fund - The General Fund is the general operating fund of the County and accounts for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds account for the proceeds of specific revenue sources (other than special assessments, expendable trusts or major capital projects) that are legally restricted to expenditures for specified purposes. For budget purposes, Mecklenburg County utilizes six Special Revenue Funds - Capital Reserve Fund, Storm Water Utility Fund, Law Enforcement Service District Fund and Transit Sales Tax, Solid Waste Fund and Technology Reserve Fund. The Capital Reserve Fund accounts for the accumulation of funds for major capital purchases costing from $10,000 to $100,000 each, and\or having a useful life of less than 20 years. The Storm Water Utility Fund accounts for fees and expenditures designated for flood control, drainage and storm water management. The Law Enforcement Service District Fund accounts for the ad valorem taxes for the law enforcement service district, which is levied in the unincorporated areas of the County. The Transit Sales Tax Special Revenue Fund is used to account for the County’s portion of the one-half cent transit sales tax, which will be used for the expansion, and subsequent operation of public transportation. Technology Reserve Fund: Technology Reserve accumulation of funds for major technology purchases.
Fund
accounts
for
the
Fleet Reserve Fund: The Fleet Reserve Fund accounts for the accumulation of funds for fleet replacement. Capital Projects Funds: Capital Projects Funds account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by the Proprietary Funds).
PROPRIETARY FUNDS Enterprise Fund - The Enterprise Fund accounts for operations that are financed and operated in a manner similar to private business enterprises where the determination of net income is necessary or useful for sound financial administration and where the costs of providing such services are typically recovered to a varying extent through user charges.
536
FIDUCIARY FUNDS Agency Funds - The County has several Agency Funds which account for assets held by the County as agent for individuals, private organizations, other governmental units, and/or other funds. These funds are custodial in nature and do not involve measurement of results of operations.
537
Basis of Budgeting and Accounting Background There are three basic categories of differences between the basis of accounting and the basis of budgeting that follows generally accepted accounting principles (GAAP) for state and local government: (1) Basis of Accounting – “Cash plus encumbrances” and “modified accrual” are two of the different ways to define revenue and expenditures; (2) Perspective – The budget and accounting reports may have different fund reporting structures, e.g., a budget may account for debt services in the Local Funds, while GAAP principles require that debt service be recorded in a separate fund; (3) Reporting Component – Mecklenburg County’s Comprehensive Annual Financial Report (CAFR) may present “reporting components” and funds in different ways than the budget document.
Basis of Accounting The accounts of the County are organized on the basis of funds and account groups, each of which constitutes a separate accounting entity. A fund is a group of functions combined into a separate accounting entity (corresponding to a corporation in the private sector) having its own assets, liabilities, equity, revenue and expenditures/expenses. The types of funds used are determined by GAAP. The number of funds established within each type is determined by sound financial administration. The various funds are the result of the diverse nature of the County's operations and compliance with legal provisions. These funds have been grouped by type to facilitate understanding of the financial statements. Governmental funds are those through which most governmental functions of the County are financed. Proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when earned, and their expenses are recognized when incurred. The measurement focus is upon determination of net income. Fiduciary funds account for assets held by the County as agent or trustee for individuals, private organizations, other governmental units and/or other funds. Account groups establish accounting control and accountability for the County's general fixed assets and the unmatured principal of its long-term debt.
Internal Control Management of Mecklenburg County is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the County are protected from loss, theft, or misuse and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objections are met. The concept of reasonable assurance recognizes that: (1) the cost of control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.
538
Basis of Budgeting The basis of budgeting refers to the conversions for recognition of costs and revenue in budget development and in establishing and reporting appropriations, which are the legal authority to spend or collect revenues. Mecklenburg County uses a modified accrual basis for budgeting governmental funds. The General Fund, a governmental fund, budget is prepared on the modified accrual basis of budgeting consistent with generally accepted budgeting principles (GAAP), as required by the North Carolina General Statutes. The Storm Water Utility, Capital Reserve, Transit Sales Tax, Solid Waste, Technology Reserve, and Law Enforcement Service District Fund budgets are also prepared on the modified accrual basis of budgeting. Under this method, revenues are recognized as the amount becomes susceptible to accrual by becoming measurable and available to finance the County's operations. Available means collectible within the current accounting period or soon enough thereafter to pay liabilities of the current period. In Mecklenburg County, the basis of accounting and basis of budgeting are the same. Expenditures are recognized in the accounting period in which the fund liability is incurred, if measurable, except for unmatured interest on long-term debt, which is recognized when due, and accrued vacation and sick leave, which is recorded in the General Long-Term Debt Account Group. In applying the susceptible to accrual concept to intergovernmental revenues, the legal and contractual requirements of the numerous individual programs are used as guidance. There are essentially two types of these revenues. In one, funds must be disbursed for a specific purpose or project before any amount will be reimbursed to the County; therefore, revenues are recognized as receivable based upon the expenditures recorded. In the other, moneys are virtually Licenses and permits, unrestricted as to purpose of expenditure and are usually revocable only for failure to meet prescribed compliance requirements. These resources are reflected at the time of receipt or earlier if the susceptible charges for services and other revenues are recorded as revenues when received in cash because they are generally not measurable until actually received. The Solid Waste Disposal Enterprise Fund budget is prepared on full accrual basis, under which revenues are recognized when earned and measurable and expenses are recognized when incurred, if measurable.
Budgetary Control Mecklenburg County maintains budgetary controls designed to monitor compliance with expenditure limitations contained in the annual appropriated budget approved by the Board of County Commissioners. A project length financial plan is adopted for the Capital Projects. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by function within the General Fund. Mecklenburg County also maintains an encumbrance recording system as one technique of accomplishing budgetary control. Generally, encumbered amounts lapse, at year-end in the General Fund but not in the Capital Projects Fund and Special Revenue Funds.
539
Mecklenburg County, North Carolina Debt Policy Introduction Mecklenburg County recognizes that one of the keys to sound financial management is a debt policy. These benefits are recognized by bond rating agencies and the development of a debt policy is a recommended practice by the Government Finance Officers Association. A debt policy establishes the parameters for issuing and managing debt. It provides guidelines regarding the timing and purposes for which debt may be issued, presents the types of permissible debt, and the methods of sale that may be used. The debt policy should recognize an obligation to fully and timely repay all debt as an essential requirement for entry into the capital markets. Adherence to a debt policy helps to ensure that a government maintains a sound financial position and that credit quality is protected. The debt policy is to be used in conjunction with the operating and capital budgets, the Capital Improvement Program (CIP), and other financial policies. The advantages of a debt policy are: enhancing the quality of decisions; documenting the decision-making process; identifying objectives for staff to implement; demonstrating a commitment to long-term financial planning objectives; and being viewed positively by the bond rating agencies.
Debt Instruments General obligation bonds are bonds secured by a promise to levy taxes in an amount necessary to pay debt service, principal and interest, coming due each fiscal year. General obligations bonds are backed by the full faith and credit of the County. These bonds are authorized by a referendum or by non-voted (2/3’s) authorization by the governing body. The non-voted authorization allows governments to issue up to two-thirds of the previous year’s net debt reduction without a referendum. Revenue bonds are a pledge of the revenues generated by the debt financed asset or by the operating system of which that asset is a part. Special obligation bonds are bonds that are payable from the pledge of revenues other than locally levied taxes. Examples include the beer and wine tax or enterprise revenues. Certificates of Participation (COPs) are an alternative financing method that does not require voter approval. These certificates represent an undivided interest in the payments made by a public agency pursuant to a financing lease or an installment purchase agreement. The security for this financing is represented by a lien on the property acquired or constructed. The County uses COPs for county facilities and school purposes.
540
An Installment Purchase Contract is an agreement in which the equipment or property is acquired and periodic payments, which are sufficient to pay debt service, are made. The County has used this type of financing for short-term (2-5 years) equipment purchases.
County Debt Policy A. Long-term debt shall not be used to finance ongoing operational expenses. B. Any debt issued shall not have a maturity date beyond the useful life of the asset being acquired or constructed by the debt proceeds. C. The County shall establish an affordable debt level to preserve credit quality and ensure sufficient revenue is available to pay annual debt service. This will be balanced against the County’s need to maintain its infrastructure and manage growth. D. The County will use appropriate debt instruments to provide funding for capital assets at the lowest cost with minimal risk. The County will monitor its debt positions to maintain the lowest effective cost. E. The County will, at all times, manage its debt and sustain its strong financial position, including healthy reserves, to seek and maintain the highest credit rating possible. F. The County shall utilize pay-as-you go and other alternative sources of funding for capital projects to minimize debt levels. To have an effective pay-as-you-go program, at least one funding source must be identified that is consistent, reliable, and large enough to provide for capital needs in an amount that reduces dependency on debt.
Purposes for Debt Issuance The County may issue debt for the purpose of acquiring or constructing capital assets including land, buildings, machinery, equipment, furniture and fixtures. When feasible, debt issuance will be pooled together to minimize issuance expense. Annually, the County will prepare and adopt a Capital Improvement Program (CIP) to identify and establish an orderly plan to meet the County’s infrastructure needs. The CIP will also identify all debt-funded projects and the related debt service impact.
Debt Structure Debt will be paid off in a timeframe that is less than or meets the useful life of the asset or project acquired through the financing. The life of the debt, interest mode and principal maturity schedule make up the structure of the debt. This debt could be general obligation, revenue or special obligation bonds, certificates of participation or other installment financing agreements.
541
The County will consider various financing techniques including fixed or variable interest rate debt and interest rate swap agreements in order to minimize the interest costs over the life of the issue. The use of these techniques will be evaluated based on market conditions and the maximum benefit to the County while minimizing the County’s risk. The County will limit the ratio of unhedged variable rate debt to 35% of the total outstanding debt.
Debt Ratios The County shall abide by the following debt ratios: Overall Debt as a Percentage of Assessed Valuation This ratio measures debt levels against the property tax base which generates the tax revenues that are the main source of debt repayment. The ceiling for this ratio is 4.0%. Overall Debt per Capita This ratio measures the burden of debt placed on the size of the population supporting the debt and is widely used by rating analysts as a measure of an issuers’ ability to repay debt. This measure will not exceed $4,200. General Debt Service as a percentage of Operational Expenditures This ratio reflects the County’s budgetary flexibility to adapt spending levels and respond to economic condition changes. This ratio is targeted at a level of 20% with a ceiling of 22%. The County’s policy is to manage to the target of 20%. The ceiling of 22% is meant to provide flexibility in extraordinary circumstances. Ten year Payout Ratio This ratio reflects the amortization of the County’s outstanding debt. A faster payout is considered to be a positive credit attribute. The County will maintain a floor for its ten-year payout of 64.0%. These ratios will be calculated and reported each year in conjunction with the capital budget process, the annual financial audit and as needed for fiscal analysis.
Debt Management Policies 1. The County will issue debt only for the purposes of constructing or acquiring capital assets and for making major renovations to existing capital assets. 2. The County shall not construct or acquire a public facility if it is unable to adequately provide for the subsequent annual operation and maintenance costs of the facility. 3. The County will ensure that adequate systems of internal control exist so as to provide reasonable assurance as to compliance with applicable laws, regulations, and covenants associated with outstanding debt. 4. The County will manage debt issuance to comply with the adopted debt limits and will evaluate those limits at least every five years. 5. The County will attempt to structure debt in the best and most appropriate manner consistent with the financial policies of the County in order to level principal repayment and minimize interest expense.
542
6. The County will monitor its outstanding debt in relation to existing conditions in the debt market and will refund any outstanding debt when sufficient cost savings can be realized or utilize interest rate swap agreements to achieve cost savings. 7. To reduce the impact of capital programs on future years, the County will fund a portion of its CIP on a pay-as-you-go basis by: appropriating a minimum of three cents on the property tax rate for capital projects; appropriating 50% of the 8% excess fund balance for capital projects; and appropriating proceeds from all county land sales for capital projects. Pay-as-you-go funding will save money by eliminating interest expense on the funded projects. Pay-as-you-go capital appropriations improve financial flexibility in the event of sudden revenue shortfalls or emergency spending.
Administration and Implementation The County Manager and the Director of Finance are responsible for the administration and issuance of debt including the completion of specific tasks and responsibilities included in this policy. The County will evaluate the debt policy at least every five years.
Capital Planning and Debt Determination The Citizens Capital Budget Advisory Committee (CCBAC) appointed by the Board of County Commissioners (BOCC), reviews departments’ and other agencies’ capital requests and recommends capital projects based on capital standards. The County Manager provides a recommended Capital Improvement Program (CIP) for consideration by the BOCC. The BOCC then approves a one year capital budget and a five year capital plan. The BOCC adopts capital projects ordinances which provide budgetary authority. Funding of the capital budget will be determined in conjunction with the approval of the CIP by the BOCC. Available pay-as-you-go funding and debt issuance will be allocated to fund the CIP based on the debt management policy. Debt financing will also be considered for equipment items that normally do not go through the CCBAC, but are included in departmental requests. All voted authorizations for those purposes authorized by the Local Government Bond Act will be scheduled for referendum in November at the time of the general election. When possible, the County will utilize the non-voted (two-thirds) bond authorization for bonds to fund projects, such as government facilities. The County uses a combination of bonds and Certificates of Participation (COPS) to finance capital assets. COPs do not require voter approval but do require collateral as security. COPs are usually used to finance projects deemed essential by the governing body and timing is such that it is impractical to seek voter approval.
543
Any capital item that has not been included in either of the above two processes, but because of its critical or emergency nature where timing was not anticipated in the CIP or budgetary process, or is mandated immediately by either State or Federal requirements, will be considered for financing by installment purchase contract. Issuance of Debt The scheduling and amount of bond sales and installment purchase transactions will be recommended by the Director of Finance and the County Manager. The BOCC must approve the sale. These decisions will be based upon the identified cash flow requirements for each project to be financed, market conditions, and other relevant factors including the debt ratios. If the cash requirements for capital projects are minimal in any given year, the County may choose not to issue debt. Instead, the County may fund up-front project costs and reimburse these costs when financing is arranged. In these situations the County will adopt a reimbursement resolution prior to the expenditure of project funds. Fixed rate general obligation bond sales are conducted on a competitive basis by the Local Government Commission (LGC), a division of the Office of the State Treasurer. Variable rate bonds, revenue and special obligation bonds and COPs will be sold on a negotiated basis with the underwriter selection determined through a competitive process. Underwriters will be selected for each issue based on the particular experience and expertise necessary for that issue. Debt service for each issue will be structured in an attempt to level out the county’s total debt service payments over the life of the debt portfolio. This structuring also assists in minimizing the interest payments over the life of the issue. Structuring must take into consideration current market conditions and practices in the municipal finance market.
Legality The County must receive an opinion acceptable to the market from a nationally recognized law firm that each financing transaction complies with applicable law and all agreements in connection with any financing are legal, valid and binding obligations of the County.
Interest Rate Exchange Agreements Interest Rate Exchange Agreement shall mean a written contract entered into in connection with the issuance of County debt or in connection with County debt already outstanding with a counterparty to provide for an exchange of payments based upon fixed and/or variable interest rates. The County will govern the use of Interest Rate Exchange Agreements by the policy described in Attachment I to this debt management policy.
Continuing Disclosure
544
The County will provide on-going disclosure information to established national information repositories and maintain compliance with disclosure standards promulgated by state and national regulatory agencies. The County will maintain good communications with bond rating agencies to inform them about the County’s financial position by providing them the County’s Comprehensive Annual Financial Report (CAFR) and operating and capital improvements Budget.
Arbitrage Rebate Reporting The County will comply with all arbitrage rebate requirements as established by the Internal Revenue Service and all disclosure requirements established by the Securities and Exchange Commission. This effort includes tracking investment earnings on bond proceeds, calculating rebate payments in compliance with the tax law and remitting rebatable earnings to the federal government in a timely manner in order to preserve the tax exempt status of the County’s outstanding debt issues. Amended Amended Amended Amended
by by by by
the the the the
Board Board Board Board
of of of of
County County County County
Commissioners, Commissioners, Commissioners, Commissioners,
February 15, 2003 April 15, 2003 September 3, 2003 November 5, 2008
545
Attachment I
Mecklenburg County Interest Rate Exchange Agreement Policy This policy will govern the use by Mecklenburg County (the “County”) of Interest Rate Exchange Agreements. “Interest Rate Exchange Agreement” shall mean a written contract entered into in connection with the issuance of County debt or in connection with County debt already outstanding with a counterparty to provide for an exchange of payments based upon fixed and/or variable interest rates. The failure by the County to comply with any provision of this policy will not invalidate or impair any Interest Rate Exchange Agreement.
The Conditions Under Which Agreements May Be Entered Into
Interest
Rate
Exchange
Purposes Interest Rate Exchange Agreements may be used for the following purposes only to: 1. achieve significant savings as compared to a product available in the bond market if the use of derivatives helps to achieve diversification of a particular bond offering; 2. enhance investment returns within prudent risk guidelines; 3. prudently hedge risk in the context of a particular financing or the overall asset/liability management of the County; 4. incur variable rate exposure within prudent guidelines; 5. achieve more flexibility in meeting overall financial objectives than available in conventional markets; and 6. accomplish a financial objective not otherwise obtainable using traditional financing methods. Legality The County must receive an opinion acceptable to the market from a nationally recognized law firm that the Interest Rate Exchange Agreement is a legal, valid and binding obligation of the County and entering into the transaction complies with applicable law. Speculation Interest Rate Exchange Agreements shall not be used for speculative purposes. Associated risks will be prudent risks that are appropriate for the County to take.
546
Methods by Which Such Contracts Shall be Solicited and Procured In general, the County should procure Interest Rate Exchange Agreements by competitive bidding. The County shall determine which parties it will allow to participate in a competitive transaction. The County has the right to accept matching bids to diversify counterparty risk or reward firms for ideas and work performed. The parameters for the bid must be disclosed in writing to all potential bidders. Notwithstanding the above, the County may procure Interest Rate Exchange Agreements by negotiated methods when the County makes a determination that, due to the size or complexity of a particular swap, a negotiated transaction would result in the most favorable pricing and terms or innovation. To facilitate the procurement of Interest Rate Exchange Agreements, the County will engage an independent financial advisory firm to assist in the price negotiations, in the development of terms and in risk assessment. The County shall obtain an independent opinion that the terms and conditions of the Interest Rate Exchange Agreement reflect a fair market value of such agreement as of the date of its execution.
Form and Content of Interest Rate Exchange Agreements To the extent possible, the Interest Rate Exchange Agreements entered into by the County shall contain the terms and conditions set forth in the International Swap and Derivatives Association, Inc. (“ISDA�) Master Agreement, including any schedules and confirmation. The schedule should be modified to reflect specific legal requirements and business terms desired by the County. The County shall consider including provisions that permit the County to assign its rights and obligations under the Interest Rate Exchange Agreement and to optionally terminate the agreement at its market value at any time. In general, the counterparty shall not have the right to optionally terminate an agreement. Events of Default Events of default of a counterparty shall include the following: 1. failure to make payments when due; 2. material breach of representations and warranties; 3. illegality; 4. failure to comply with downgrade provisions; and/or 5. failure to comply with any other provisions of the agreement after a specified notice period.
547
The County will have the right to terminate the agreement upon an event of default by the counterparty. Upon such termination, the counterparty will be the “defaulting party” for purposes of calculating the termination payment owed.
Aspects of Risk Exposure Associated with Such Contracts Before entering into an Interest Rate Exchange Agreement, the County shall evaluate all the risks inherent in the transaction. These risks to be evaluated could include: a. counterparty risk – the risk of a payment default on a swap by an issuer’s counterparty; b. termination risk – the risk that a swap has a negative value and the issuer owes a breakage fee if the contract has to be terminated; c. rollover risk – the risk of a failed remarketing or auction with respect to any variable rate bonds associated with a swap; or the risk that an issuer cannot secure a cost-effective renewal of a letter or line of credit; d. basis risk - the risk that floating rate cash flow streams may diverge from each other; e. tax event risk – the risk that the spread between taxable and tax-exempt rates will change as a result of changes in income tax laws or other conditions; and f.
amortization risk – the risk that the amortization of the swap will not be fully integrated with the amortization of the underlying bonds.
The County shall endeavor to diversify its exposure to counterparties. To that end, before entering into a transaction, it should determine its exposure to the relevant counterparty or counterparties and determine how the proposed transaction would affect the exposure. The exposure should not be measured solely in terms of notional amount, but also how changes in interest rates would affect the County’s “Value at Risk” exposure for outstanding agreements.
Counterparty Selection Criteria The County may enter into an Interest Rate Exchange Agreement if the counterparty has at least two long term unsecured credit ratings in the double A category from Fitch, Moody’s, or S&P and the counterparty has demonstrated experience in successfully executing Interest Rate Exchange Agreements. If after entering into an agreement the ratings of the counterparty are downgraded below the ratings required, then the agreement shall be subject to termination unless (a) the counterparty provides either a substitute guarantor or assigns the agreement, in either case, to a party meeting the rating criteria reasonably acceptable to the County or (b) the counterparty (or guarantor) collateralizes the Interest Rate Exchange Agreement in accordance with the criteria set forth in this Policy and the Interest Rate Exchange Agreement.
548
Provisions for Collateralization Should the rating of the counterparty, or if secured, the entity unconditionally guaranteeing its payment obligations not satisfy the requirements of the Counterparty Selection Criteria, then the obligations of the counterparty shall be fully and continuously collateralized by (a) direct obligations of, or obligations the principal and interest on which are guaranteed by, the United States of America or (b) direct obligations of U.S. Agencies and such collateral shall be deposited with the County or an agent thereof. The specific collateral requirements for each Interest Rate Agreement shall be set forth in the corresponding swap documentation.
Long-Term Implications In evaluating a particular transaction involving the use of Interest Rate Exchange Agreements, the County shall review long-term implications associated with entering into Interest Rate Exchange Agreements, including costs of borrowing, historical interest rate trends, variable rate capacity, credit enhancement capacity, opportunities to refund related debt obligations and other similar considerations.
Methods to be Used to Reflect Such Contracts in the County’s Financial Statements The County shall reflect the use of Interest Rate Exchange Agreements on its financial statements in accordance with generally accepted accounting principles.
Monitoring The County shall monitor the performance of Interest Rate Exchange Agreements and may employ a financial advisor to assist in evaluating the effectiveness of its Agreements. A written report, provided at a minimum quarterly, shall include at least: 1. preparing a description of each contract, including a summary of its terms and conditions, the notional amount, rates, maturity and other provisions thereof; 2. determining any amounts which were required to be paid and received, and that the amounts were paid and received; 3. determining that each counterparty is in compliance with it rating requirements; 4. determining that each counterparty is in compliance with the downgrade provisions, if applicable (See Counterparty Selection Criteria);
549
5. assessing the counterparty risk, termination risk, basis risk and other risks, which shall include the marked to market value for each counterparty and relative exposure compared to other counterparties and a calculation of the County’s Value at Risk for each counterparty; and 6. determining, at least quarterly, that all posted collateral, if required, has a net market value of at least the collateral in the Interest Rate Agreement.
550
MECKLENBURG COUNTY AT A GLANCE Date of Establishment
December 11, 1762
Form of Government
Commission – Manager Commission members are elected: one from each of six districts and three at large; two-year terms. County Manager is appointed by the Commission.
Last Election:
November 4, 2010
Land Area:
543 Square Miles
County 2012 Population:
966,160
County Bond Rating:
“AAA”
Percent of Population by Age Group: 0-14 years………………………21% 15-24………………………………14% 25-34………………...……………15% 35-44………………………………16% 45-54……..………………………15% 55 years and over.…………19%
Median Age Males…….…………………………….32.8 Females……………………………...34.9
Racial Composition: Mecklenburg County 4/1/2010 White Black Other
12.2% of population identify as Hispanic (111,944)
551
MECKLENBURG COUNTY AT A GLANCE Recreational & Cultural Neighborhood & Other Parks Libraries
210 20
Mecklenburg County Employment Trends Year 2010 2009 2008 2007 2006 2005 2004 2003
Number of Jobs 534,686 537,803 566,904 565,116 538,199 518,986 508,536 502,600
Employed Residents 411,376 404,880 437,231 436,031 427,125 412,114 403,664 396,952
Total Unemployment 50,503 49,202 28,573 20,616 20,019 21,280 21,285 22,109
Unemployment Rate 10.9% 10.8% 6.10% 4.50% 4.50% 4.90% 5.00% 5.30%
Top 5 Industries Industry Type Wholesale & Retail Professional and Technical Services Education, Health, Social Service Construction Finance & Insurance
#of Units 6,589 4,417 3,008 2,504 2,314
Employed 87,007 38,821 93,497 23,539 48,595
Top County Employers Carolina Healthcare System Wells Fargo/Wachovia Corporation Charlotte Mecklenburg Schools Bank of America
27,432 20,500 18,202 13,960
Headquartered Fortune 500 Companies Fortune Rank 9 50 157 173 302 337 339 427 460 498
Company Name Bank of America Lowe’s* Nucor Duke Energy Family Dollar Goodrich Corp Sonic Automotive Domtar* SPX Ruddick
Revenue ($ Billions) $150.5 48.8 15.8 14.3 7.9 7.0 6.9 5.9 4.9 4.4
* indicates headquartered in adjacent county
552
MECKLENBURG COUNTY AT A GLANCE Effective Buying Income Group Under $24,999 $25,000-$49,999 $50,000-$74,999 $75,000 and over
21% 35% 21% 23%
City/County Schools Total Number of Schools Elementary Schools Middle Schools High Schools Alternative Schools Pre-K Sites New Schools Opened in 2010-11 Mobile/Modular Classrooms
2010 Enrollment: Grades K-5 Grades 6-8 Grades 9-12 Pre-K Limited English Proficient % Economically Disadvantaged Students
178 100 36 33 4 5 2 612
135,638 67,286 30,228 38,124 3,169 14,204 53.4%
Private (Non-Public) Schools Independent Schools Total number of students
84 >24,000
Educational Attainment Percent high school or higher Percent Associates degree or higher Percent Bachelor’s degree or higher
89.1% 48.2% 39.9%
Hotels Total Number of Hotels and Motels Total Number of Rooms Total Retail Sales
187 23,298 $13,319.5 Million
Source: Charlotte In Detail, Charlotte Chamber of Commerce
553
FY 2011-2012 MECKLENBURG COUNTY JURISDICTION TAX RATES Real Estate/Personal Property Interest date is January 5, 2012. Taxes must be paid prior to this date to avoid interest.
2008-09 RATE
2009-10 RATE
2010-2011 RATE
2011-2012 RATE
0.4586*
0.4586*
0.4586*
0.4370* 0.25*
Charlotte
336-5015
Bill Parks
Cornelius
892-6031
Tracy Wainwright
0.275*
0.275*
0.275*
Davidson
892-7591
Eric Hardy
0.365*
0.365*
0.365*
.35*
Huntersville
875-6541
Janet Stoner
0.29*
0.29*
0.29*
0.2825*
Iredell County
878-3010
Debbie Souther
0.445
0.445
0.445
0.485
Matthews
847-4411
Christine Surratt
0.3325*
0.3325*
0.3325*
.3025*
Mecklenburg County 336-2624
Michael Bryant
0.8387
0.8387
0.8387
.8166
Mint Hill
545-9726
Naida Sergel
0.275*
0.275*
0.275*
0.27*
Pineville
889-2291
Ann Wilson
0.32
0.32
0.32
.32
0.1788
0.1788
0.2046
.1866
Deborah Wagenhauser
0.219
0.215
0.215
21.5
Donna Helms
0.665
0.665
0.665
.665
Police Service District336-2624
Michael Bryant
Stallings
821-8557
Union County
283-3848
*Plus Auto Fee
Misc.Rates/Notes
Minimum Bill Amount
Charlotte $30.00
Charlotte
$5.00
Matthews
$5.00
Iredell County Solid Waste Fee with Elderly Exemption $26.00
Cornelius $10.00
Cornelius
$5.00
Mecklenburg
$5.00
Iredell County Fire Tax
0.065
Matthews $15.00
Davidson
$5.00
Mint Hill
$5.00
Stallings Fire Tax
.0428
Mint Hill
Huntersville $5.00
Pineville
$5.00
Hemby Bridge Fire Tax
.0493
Huntersville $20.00
$10.00
Springs Fire Tax
.0315
Davidson $20.00
Wesley Chapel Fire Tax
.0220
Waxhaw Fire Tax
Solid Waste Fee**
Mecklenburg CountyCharlotte
Total
Iredell County
Huntersville $54.00
Single-Family & Mobile Homes
$15.00
$45.00
$60.00
$201.00
$52.00
Multiple Family
$15.00
$27.00
$42.00
See below
$52.00
$85.00
Spinnaker Point
$73.00
Linden Court
$73.00
Spinnaker Reach
$63.00
Deer Park-Boardwalk
$57.00
.06
.0372
Davidson
Davidson Landing
$
Apartment Complexes Lakeside Apartments (Actual cost)
$4,350.00
Oakhill Apartments (Acutal cost)
$5,219.00
Town of Davidson: There are special provisions for properties exempted from solid waste fees
COMBINED TAX RATES (Jurisdictions where Mecklenburg County collects all ad valorem taxes.) JURISDICTION
2008-09 Rate
2009-10 Rate
2010-11 Rate
2011-12 Rate
UNINCORPORATED COUNTY
1.0175
1.0175
1.0433
1.0032
IF INSIDE CITY OF CHARLOTTE
1.2973
1.2973
1.2973
1.2536
IF INSIDE TOWN OF CORNELIUS
1.1137
1.1137
1.1137
1.0666
IF INSIDE TOWN OF DAVIDSON
1.2037
1.2037
1.2037
1.1666
IF INSIDE TOWN OF HUNTERSVILLE
1.1287
1.1287
1.1287
1.0991
IFINSIDE TOWN OF MATTHEWS
1.1712
1.1712
1.1712
1.1191
IF INSIDE TOWN OF MINTHILL
1.1137
1.1137
1.1137
1.0866
IF INSIDE TOWN OF PINEVILLE 1.1587 Municipal Tax Districts: Rate Calculation Charlotte District 1 .01680 Charlotte District 2 .0168 Plus Additional .0233 Charlotte District 3 .0168 Plus Additional .0358 Charlotte District 4 .0668 Charlotte District 5 .0279 No Special District Tax for Davidson
1.1587 District Rate .01680 .04010 .05260 .06680 .02790
1.1587 1.1366 Combined County, City & District Rate 1.2704 1.2937 1.3062 1.3204 1.2815
554
FIVE YEAR HISTORICAL COMPARISON OF TAX RATES
County Cabarrus Cumberland Durham Forsyth Gaston Guilford Iredell Mecklenburg Orange Union Wake
FY07-08
FY08-09
FY09-10
FY10-11 FY11-12¹ Tax Rate Tax Rate Tax Rate Tax Rate Tax Rate (Change) (Change)² (Change) (Change) (Change) 63.00
63.00
63.00
63.00
63.00
0.11
0.00
0.00
0.00
0.00
88.00
86.00
76.6*
74.00
74.00
0.00
(2.00)
(9.40)
(2.60)
0.00
83.40
70.81*
70.81
74.59
74.59
2.50
(12.59)
0.00
3.78
0.00
69.60
69.60
67.4*
67.40
67.40
3.00
0.00
(2.20)
0.00
0.00
84.00*
83.50
83.50
83.50
83.50
(4.00)
(0.50)
0.00
0.00
0.00
69.14
73.74
73.74
73.74
78.24
2.99
4.60
0.00
0.00
4.50
44.50*
44.50
44.50
44.50
48.50
(2.00)
0.00
0.00
0.00
4.00
83.87
83.87
83.87
83.87
81.66*
1.98
0.00
0.00
0.00
(2.21)
95.00
99.80
85.80*
85.80
85.80
4.70
4.80
(14.00)
0.00
0.00
71.11
66.50*
66.50
66.50
66.50
7.44
(4.61)
0.00
0.00
0.00
67.80
53.40*
53.40
53.40
53.40
4.40
(14.40)
0.00
0.00
0.00
¹Source: NCACC FY12 Tax Rate Survey ²”Change” is the value that reflects the increase or decrease in the tax rate from the previous fiscal year. Tax rate and change are reflected in cents. *Revaluation Year
555
20 Year Tax Rate Summary 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00
0.81 0.76
0.81 0.81
0.73
0.66
0.84 0.73
0.73
0.84
0.84 0.74
0.82
0.84 0.84
0.8166 0.84
0.76
0.73
0.69
0.84
Year and Majority Party YEAR
TAX RATE
BOARD MAKE-UP
PARTY MAJORITY
FY92 R
0.66
R-
5
D-
2
Republican
FY93 D
0.76
R-
3
D-
5
Democrat
FY94 D
0.81
R-
3
D-
5
Democrat
FY95 R
0.81
R-
5
D-
4
Republican
FY96 R
0.81
R-
5
D-
4
Republican
FY97 D
0.73
R-
4
D-
5
Democrat
FY98 D
0.73
R-
4
D-
5
Democrat
FY99*D
0.69
R-
2
D-
7
Democrat
FY00 D
0.73
R-
2
D-
7
Democrat
FY01 D
0.73
R-
4
D-
5
Democrat
FY02 D
0.84
R-
4
D-
5
Democrat
FY03 R
0.84
R-
5
D-
4
Republican
FY04*R
0.74
R-
5
D-
4
Republican
FY05 D
0.76
R-
3
D-
6
Democrat
FY06 D
0.84
R-
3
D-
6
Democrat
FY07 D
0.82
R-
4
D-
5
Democrat
FY08 D
0.84
R-
4
D-
5
Democrat
FY09 D
0.84
R-
4
D-
5
Democrat
FY10 D
0.84
R-
3
D-
6
Democrat
FY11 D
0.84
R-
3
D-
6
Democrat
FY12*D
0.8166
R-
3
D-
6
Democrat
*Denotes Revaluation
556
555
Property Tax Rate per Capita: Ten Year Comparison $1,000 $800
$903
$880 $793
$770
$939
$917 $916
$892
$870
$780
Rate
$600 $400 $200 $0 2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Year
Fiscal Year County Population₁ 2012 966,160 2011 938,020 2010 919,628 2009 893,892 2008 869,954 2007 842,674 2006 815,218 2005 791,473 2004 768,421 2003 746,404
Property Tax₂ $880,397,487 $820,185,697 $819,367,965 $796,634,834 $761,115,218 $709,541,228 $696,555,751 $599,193,464 $574,692,081 $576,596,799
Per Capita Rate $939 $892 $917 $916 $903 $870 $880 $780 $770 $793
Notes Revaluation
Revaluation
₁ Charlotte Chamber of Commerce ₂
FY03 and FY12 budget documents
557
FY2012 Fee Changes Land Use and Environmental Services Agency (LUESA) Fees/Charges Department/Item
Current
Change
Approved Increase
Comments
Revenue Generated
LUESA - Environmental Health Increase public swimming pool annual and seasonal operation permit fees.
Increase food service plan review fees.
Increase public swimming pool permit to construct (plan review) fee.
Permit fees have been level for at least 5 years, while the work required for $120.00 for $130.00 for $10.00 permitting has increased substantially due seasonal; seasonal and increase for $ to regulatory changes. The increase $240.00 for $250.00 for each - seasonal requested is small and there is adequate annual annual and annual time to notify pool operators before the next renewal period.
$200.00
$200.00
$250.00
$250.00
13,000
$50.00
General Statute change allows a fee of up to $250. This fee is currently in place for many counties within North Carolina.
$
13,000
$50.00
Review time for public swimming pools can easily exceed that for food service plans due to the complexity of calculations required. This increase will retain the consistency in plan review pricing in Environmental Health.
$
400
All of the Residential Waste collected by the seven (7) municipalities in Mecklenburg County is disposed at the Republic Speedway Landfill. Under the County's contract, Republic is paid a Use Fee that is adjusted annually by the change in the Consumer Price Index, estimated at $.50 per ton for the current year. This Use Fee was also increased in January 2011 as a result of an Arbitration $1.00 per ton $ Settlement on pass-through charges under the contract (an additional $.50 per ton). This Tipping Fee adjustment would pass on this aggregate $1.00 per ton increase in the County's costs to those disposing the Residential Waste. The Speedway Tipping Fee was last increased on July 1, 2010. The Waste Management Advisory Board unanimously recommends this increase.
350,000
Solid Waste Disposal Enterprise Fund
Increase Tipping Fee charged at the Speedway Landfill for Residential Waste
26.50 per ton
$27.50 per ton
558
Land Use and Environmental Services Agency (LUESA) (cont'd) Department/Item
Current
Change
Approved Increase
Comments
Revenue Generated
LUESA - Code Enforcement
Amend LUESA Fee Ordinance to recapture added service cost from customers not using fully electronic permitting and other electronic services when those services are available.
FY12 Land Development fee schedule that results in County-provided Land Development services on behalf of the Towns being covered 100 percent by Land Development fees.
Code Enforcement will complete installation of 2-D Electronic Plan Submittal-Electronic Plan Review (EPSEPR) in 2011, at which point permitting and inspection will be fully electronic. As indicated by the success of the Trades Internet Permit (TIP) program, most customers will gladly use electronic tools when available, saving time and a trip to the Hal Marshal Center. However, we anticipate some customers will continue submitting paper drawings and permit applications. While the Department does not seek to dictate business format, after the EPS-EPR installation is complete our service norm will be paperless; at that point the cost of service on hard copy manual submittals will be higher than electronic submittals. The Building Development Commission (BDC) and Department have a long history of allocating fees in relation to cost of service. This proposal applies the same approach to the cost of service on hard copy manual plan review and permitting submittals, where electronic tools are available. This proposal will also serve as an incentive to customers to use the most efficient process tools, for their benefit as well as all customers. The Building Development Commission unanimously supports this request.
$
100,000
In December 2010, the six Town Managers and the Water & Land Resources Division of Land Use & Environmental Services Agency (LUESA) assembled a FY12 Land Development Budget Committee to address the ongoing shortfall of Land Development revenues compared to expenses. This shortfall is a result of a significant downturn in the economy and a major shift away from single-family residential subdivisions to smaller commercial development projects. On behalf of the six Towns, Mecklenburg County provides Land Development services which consist of permitting and inspection of new development and redevelopment for zoning, erosion control, storm water, and transportation requirements. For the past couple of years, $ Mecklenburg County Storm Water Services has subsidized Land Development services in the Towns in anticipation of the economy improving, the diversity in land development projects increasing, and revenues returning to the level needed to cover expenses. The Committee came to consensus to recommend that a new Land Development fee scheduled be adopted. Under the proposal, Land Development fees would financially support 100 percent of the Land Development services being provided by the County on behalf of the Towns. The Land Development fees proposed by staff below are very similar to the City's current Land Development fees. The last time the County increased Land Development fees was in July 2007.
315,000
559
Land Use and Environmental Services Agency (LUESA) (cont'd) Fees/Charges
Department/Item
Approved Increase
Comments
Revenue Generated
Current
Change
$6,000 + $600 per disturbed acre
$10,000 + $650 per disturbed acre
$4,000 + $50 per disturbed See above acre
$
13,828
$9,000 + $600 per disturbed acre
$9,000 + $500 per disturbed acre
-$100 per See above disturbed acre
$
-
Small project construction Plan review & Inspection (less than 1 acre)
$1,000.00
$1,500.00
$
5,000
Medium project construction Plan review & Inspection (Up to 5 acres disturbed)
$2,000 + $600 per disturbed acre
$8,600 + $250 per disturbed acre
$6,600 base fee increase. $350 per Includes Public Construction Projects disturbed acre decrease
$
216,642
Large project construction Plan review & Inspection (5 acres or more disturbed)
$5,000 + $600 per disturbed acre
$8,600 + 250 per disturbed acre
$3,600 base fee increase. $350 per Includes Public Construction Projects disturbed acre decrease
$
-
Minor changes to approved plans
$150.00
$200.00
$50.00
See above
$
1,050
Major revisions to approved plans
$500.00
$700.00
$200.00
See above
$
5,600
Record Plat review
$0.00
$1,100.00
$1,100.00
See above
$
41,800
Posting of a New Surety
$0.00
$370.00
$370.00
See above
$
15,540
Annual 5 Year (from Original Effective date) Plus extension renewal
$0.00
$370.00
$370.00
See above
$
3,885
Reduction of a Surety
$0.00
$370.00
$370.00
See above
$
3,885
Replacement of a Surety
$0.00
$370.00
$370.00
See above
$
3,885
Release of a Surety after 4 Years from Original Effective Date
$0.00
$370.00
$370.00
See above
$
3,885
Revisions to Existing Fees Small Subdivision Construction Plan Review & Inspection (less than 10 acres disturbed) Large Subdivision Construction Plan Review & Inspection (10 acres or more disturbed)
$500.00
See above
New Land Development Fees:
560
Park and Recreation - Athletic Fields
Department/Item
Fees/Charges Approved Increase/ Current Increase Decrease
Athletic Fields
$12.50 per hour
$17.00 per hour
$4.50
Athletic Field Lights
$10.00 per hour
$25.00 per hour
$15.00
Justification/Comments A 2010 North Carolina State University survey found Mecklenburg County was below the mean and median fee rates within North Carolina for athletic field reservations and athletic field lighting. Additional department review of other agencies within 250 miles of Mecklenburg County (including Virginia, South Carolina and Georgia) found similar results. The increases place Mecklenburg County in the upper third of the fee range for similar size agencies.
Revenue Generated $
27,000
$
13,400
561
GLOSSARY ABC PROFIT – A net profit received from local Alcohol Beverage Commission (ABC) stores.
AD VALOREM TAX - A tax based on the assessed value of real estate or personal property.
AGENCY - An organization that is aligned strategically to the Balanced Scorecard. An agency provides services to specific populations in order to meet desired outcomes.
APPROPRIATION - An authorization granted by the Board of County Commissioners to expend certain funds and incur obligations for specific purposes. There is a time limit on when funds may be expended.
ARBITRAGE – The ability to invest proceeds from the sale of tax exempt securities in higher yielding taxable securities which results in interest revenue in excess of interest costs.
ASSET - Property owned by the County which has monetary value. AVERAGE DAILY MEMBERSHIP (ADM) - The sum of the number of days of membership for all students in individual school units divided by the number of school days in the term.
BALANCED SCORECARD - The Balanced Scorecard communicates organizational mission and business strategy; it is a framework that measures and monitors performance on the County’s desired results and goals.
BOARD OF COUNTY COMMISSIONERS (BOCC) – The governing body of public officials elected to represent Mecklenburg County. Also referenced as, “Board”.
BOND – A written promise to pay a sum of money (principal or face value) at a specified future date (the maturity date) including periodic interest paid at a percentage of the principal (interest rate). For instance, the county issues General Obligation (G.O.) bonds which require approval by voter referendum before issuance and Two-Thirds Bonds which do not require referendum approval by voters.
BOND ORDINANCE – A bond ordinance or resolution authorizes a bond issue which outlines the purpose and the amount to be issued.
BONDS AUTHORIZED AND UNISSUED – These are bonds that have been authorized legally but not issued. Once issued, these bonds can be sold without further authorization from the Board.
562
BOND ORDINANCE – A bond ordinance or resolution authorizes a bond issue which outlines the purpose and the amount to be issued.
BUDGET - An annual financial plan that identifies revenues; specifies the type and level of services to be provided; and establishes the amount of money which may be spent within a certain time period.
BUDGET CALENDAR – The budget calendar is a schedule of key dates or milestones which the County follows in preparation and adoption of the annual budget. The budget calendar must comply with the N.C. General Statute requirements that a balanced budget be adopted by July 1 of each year.
BUDGET ORDINANCE - The budget ordinance levies taxes and appropriates revenues for specified purposes, functions, activities, or objectives during a fiscal year.
BUDGET (UNIT) ORGANIZATION – A budget unit is an administrative division of the County which is responsible for an operation within an agency.
BUSINESS PARTNERS – Business partners are organizations in the region which collaborate with the County to achieve community goals and the desired results. Business partners include, but are not limited to, Charlotte-Mecklenburg Schools, Central Piedmont Community College, Mecklenburg’s towns, the City of Charlotte, Historic Landmarks Commission, and area hospitals.
CAPITAL ASSETS – Capital assets have significant value and a useful life of several years. Capital assets are referred to commonly as fixed assets.
CAPITAL IMPROVEMENT PROGRAM (CIP) - A financial plan for capital expenditures to be incurred each year over a fixed period of years to meet capital needs in the County. The CIP process identifies capital projects such as land purchases, prioritizes projects based on need and recommends a financing strategy for BOCC approval.
CAPITAL PROJECTS – Capital projects involve the purchase or construction of capital assets. Often a capital project encompasses the purchase of land, major facility renovations, and the construction of a building or facility. Design, engineering, or architectural fees are often part of a capital project. Projects have a minimum cost of $250,000 and have a useful life of five or more years.
CENTRAL PIEDMONT COMMUNITY COLLEGE (CPCC) – The County partners with CPCC to provide education and literacy services to residents. Also, the County supports financially CPCC’s capital needs by providing funds for construction and maintenance.
CERTIFICATES OF PARTICIPATION (COPS) – COPS are issues backed by a lien on the equipment or facility they finance. Payments are subject to annual appropriations.
563
CHOICE MATRIX - Illustrates the choices available to the Board of County Commissioners in funding services. All services funded by the County are categorized into mutually exclusive designations as follows:
No Choices (Program or Funding) No Program Choice/Funding Choice Program Choice/No Funding Choice Program and Funding Choice
CITIZENS’ CAPITAL BUDGET ADVISORY COMMITTEE (CCBAC) – A voluntary advisory board made up of citizens, appointed by each Mecklenburg County Commissioner, that meets regularly during budget preparation to review departmental capital project requests for capital standards.
CHARLOTTE-MECKLENBURG SCHOOLS (CMS) – The County has a funding relationship with CMS to support financial needs related to capital costs such as the construction of new schools in the community. In addition, the County provides supplemental operating funds to augment the State’s funding, which is the primary revenue source for CMS.
CONSUMER PRICE INDEX (CPI) - A statistical description of price levels provided by the U.S. Department of Labor. The index is used as a measure of the increase in the cost of living (i.e., economic inflation).
CONTINGENCY - An appropriation of funds to cover unanticipated events that may occur during the fiscal year. Transfers from this account must be approved by the Board of County Commissioners. Funds held in contingency may be restricted to a specific use. If funds are placed in restricted contingency, a BOCC action to approve release of the funds is required.
CURRENT LEVEL – The current level indicates the funding resources needed to maintain the present operation of County services.
DEBT SERVICE – Debt service is the payment of interest and principal on an obligation resulting from the issuance of bonds.
E-GOVERNMENT – The use of the Internet and other information technology to communicate details on County services and to increase government productivity and efficiency. E-government allows citizens to conduct business (i.e., tax payments) electronically.
ENCUMBRANCE – An encumbrance is a financial transaction of appropriated funds related to unperformed contracts for goods or services.
ENTERPRISE FUND – This type of fund accounts for operations that are financed by fees or user charges. The consumer of the service pays for the service. Ideally, fees recover the cost to provide the service. Land Use and Environmental Services is one example of a County agency that uses fees to pay for their permitting process.
564
ESTIMATE – An estimate is an annualized projection of current year revenues or expenditures.
ESTIMATED ASSESSED VALUATION - A valuation is based on 100 percent of estimated market values for personal and real property as of January 1. Assessed valuations are established by the Board of County Commissioners and the N. C. General Statutes at least every eight years. Mecklenburg County has a revaluation of real and personal property every four years. Assessed valuation is a component of the local property tax.
EXPENDITURES – The cost of goods and services received by the County. An accrual or modified accrual basis is an accounting exercise that recognizes expenditures regardless of whether cash payments have been made. On the other hand, cash basis accounting recognizes cash payments when they have been made.
FISCAL YEAR (FY) The fiscal year for Mecklenburg County is July 1 through June 30.
FOCUS AREAS – The Focus Areas represent 14 key elements in Vision 2015. Successful performance in these areas is measured by the Balanced Scorecard. The Focus Areas are as follows:
Community Health and Safety – Make our community healthier and safer.
Effective and Efficient Government – Provide services in a highly effective, efficient, and inclusive manner. Good government is accountable for results.
Social, Education and Economic Opportunity – Create an environment where all Mecklenburg residents can become self-sufficient and have equal access to services.
Sustainable Community – Support a vibrant and diverse economy while protecting natural resources and enhancing the quality of life.
FUND - An independent fiscal and accounting entity with a self-balancing set of accounts which are segregated for the purpose of fulfilling specific activities and/or objectives. The set of accounts capture cash flow, revenue sources, liabilities, obligations, reserves and equities.
FUND BALANCE – The calculation is the difference between fund assets and fund liabilities. A negative fund balance is called a deficit.
GEOGRAPHIC INFORMATION SYSTEM (GIS) - A computer-based technology tool used to display information for analysis and planning. For example, the County uses GIS to determine the frequency of parks used by residents in the County. This type of analysis helps to make decisions such as opening new park locations or closing existing parks. Essentially, GIS supports business decisionmaking.
565
GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA) – The GFOA is a professional association of state/provincial and local finance officers dedicated to the sound management of public funds.
GROWTH REVENUES – Growth revenues are received due to growth in the tax base (i.e., new construction or revitalization projects), normal increases in sales tax revenues, and increases to other unclassified County revenues.
HEALTH AND HUMAN SERVICES - Promote and protect the health of our residents and encourage personal self-sufficiency.
INFRASTRUCTURE – Tangible assets such as facilities, buildings, roads, bridges, curbs and gutters, streets and sidewalks and pipeline.
INTERGOVERNMENTAL REVENUES - Revenues received from other government entities for a specified purpose.
LAW ENFORCEMENT SERVICE DISTRICT (LESD) – In January 1996, a Law Enforcement Service District was created in order to finance and provide law enforcement services to unincorporated areas in the County. The Law Enforcement Service District is supported by its own tax rate.
LIABILITY – A liability is a debt or other legal obligation arising out of a transaction in the past which must be liquidated, renewed, or refunded at some future date. This definition does not include encumbrances.
LONG-TERM DEBT – A long-term debt is debt with a maturity date of more than one year after the date of issuance.
LAND USE & ENVIRONMENTAL SERVICES AGENCY (LUESA) – A county department comprised of divisions that provide services including, but not limited to, residential permitting, waste disposal, inspections, groundwater protection and zoning enforcement.
MANAGING FOR RESULTS (M4R) - A strategic planning and performance management process which includes four key components: business planning, performance budgeting, performance measuring and reporting, and performancebased decision making.
MECKLENBURG VISION 2015 - Adopted by the Board June 5, 2001, Vision 2015 supports the Board’s direction for the community by the year 2015. A summary of the community vision is “In 2015, Mecklenburg will be a community of pride and choice for people to LIVE, WORK and RECREATE.”
MEDIC-EMERGENCY MEDICAL SERVICES (EMS) – MEDIC provides emergency medical, paramedic, and ambulance services to residents on behalf of the County. The County provides funding to cover a portion of the costs to deliver the service.
566
MODIFIED ACCRUAL ACCOUNTING – This accounting practice records revenue as the amount becomes measurable and available to finance the County's operations. “Available” means collectible within the current period or soon thereafter to pay liabilities for the current period. Expenditures are recorded when the liability is incurred, if measurable, except for interest on long-term debt which is recorded when due. Accrued vacation and sick leave is recorded when used in the General Long-Term Debt Account group.
NATIONAL ASSOCIATION OF COUNTIES (NACo) – A professional organization designed to represent the interests of county governments in the United States Senate and Congress. This organization provides member counties with resources and information on relevant legislation and actions. NET DEBT LIMITATION - A statutory limitation states explicitly that a government's net General Obligation debt cannot exceed 8 percent of the appraised value of property subject to taxation.
NORTH CAROLINA GENERAL STATUTES (NCGS) - State law approved and implemented in the NC General Assembly in Raleigh, North Carolina.
NON-VOTED DEBT OR 2/3RD BONDS - N.C. Statutes allow counties an amount up to 2/3rds of the amount of the net debt reduction from previous fiscal year authorized by the governing board for General Obligation bond purposes.
PAY-GO FUND – County funds are set aside in reserve to offset the amount of bond sales and future interest payments incurred by the County in an effort to save tax dollars in the future.
PERFORMANCE MEASURES – Performance measures are indicators of performance. Measure types include outcome, efficiency, output, customer service, and impact.
PROGRAM REVIEW – An annual strategic review of County-funded programs and services by three broad categories: relevance, performance and efficiency. Program Review assesses the value of the County’s investment.
REFUNDING BONDS - Bonds issued to retire bonds already outstanding that have a higher interest rate. Advance refunding bonds are issued to refinance an outstanding bond issue before the maturity date. Proceeds of the advance refunding bonds are deposited in escrow with a fiduciary invested in authorized securities and used to pay interest or redeem the bonds being refunded.
RESOURCES - Total dollars available for appropriation including estimated revenues, fund transfers, and beginning fund balances.
REVENUE BOND - A bond that is secured by the revenues of the project that is acquired, constructed, or improved with the bond proceeds. A revenue bond does not require voter approval. For example, a revenue bond may be issued to finance the construction of a parking deck. The funds received from the fees to use the deck are
567
used to pay off the issued debt for construction.
SERVICE AREAS: - Represents three major categories of County government services: County Services County services include all service areas excluding education and debt. Education Services Education services consist of CMS and CPCC’s current capital replacement program and debt service requirements. Debt Services Debt services consist of debt requirements for the general fund debt.
STRATEGIC BUSINESS PLAN (SBP) - Mecklenburg County’s 3-year plan that operationalizes progress toward Vision 2015.
SERVICE LEVELS – Service levels are descriptions of what services will be delivered and how the service will be delivered.
CRIMINAL JUSTICE SERVICES (CJS) - County employees who work for the court system to supplement the shortage of state supplied court staff.
STRATEGIC
ORGANIZATIONAL
IMPROVEMENT
(SOI)
– SOI comprises the County’s budgeting & management, planning & evaluation and Egovernment/process improvement staff.
TEMPORARY ASSISTANCE TO NEEDY FAMILIES (TANF) – TANF is temporary cash assistance given to qualifying families through the Social Services department.
TAX LEVY - The total amount to be raised by general property taxes for purposes specified in the Budget Ordinance.
TAX RATE - The amount of tax levied for each $100 of assessed valuations. The tax rate is applied to the assessed valuation to derive the tax levy.
TRIPLE “AAA” BOND RATING - The County’s current bond rating is determined by Fitch IBCA, Moody’s Investors Service and Standard and Poor's Corporation. The rating is based on the strength of a community’s economic base. The "Triple A" rating, the highest rating possible, allows the County to obtain some of the lowest interest rates available to governmental agencies when issuing bonds or notes.
568
UNDESIGNATED FUND BALANCE - The amount of fund balance which is available for future appropriations.
YIELD - The rate earned on an investment based on the cost of the investment.
569
570
Mecklenburg County North Carolina Office of Strategic Organizational Improvement 600 East Fourth Street, 11th Floor Charlotte, NC 28202-2842